DAWN
April 29, 2005
By Nasir Jamal
Interest rates hike not to affect growth
LAHORE, April 28: The State Bank Governor Dr Ishrat Hussain on Thursday said the interest rates hike would not affect investment climate and economic growth in the country.“We will keep tightening monetary expansion to combat mounting inflationary pressures till it comes down. The increased interest rates wouldn’t affect investment in next two to three years. When inflation is controlled and brought down, the cost of credit will also come down,” Dr Hussain told the reporters after inaugurating a three-day conference on management of the Pakistan economy.
The conference is organized by the Lahore School of Economics. LSE Rector Dr Shahid Amjad Chaudhry also spoke to the conference.
The governor said the industrialists had imported machinery to the tune of $3-4 billion in the last three years. “This machinery would be used to expand the existing production facilities and to set up new factories in the couple of years. Hence the increasing interests rates would not impact upon economic growth in the next couple of years or so,” he said.
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DAWN
April 29, 2005
By APP
PIA AGM held
KARACHI, April 28: Pakistan International Airlines Corporation (PIAC) Chairman Tariq Kirmani on Thursday vowed to improve the profitability and services of the national carrier. Addressing the 48th Annual General Meeting of the PIAC shareholders, Kirmani said that high world oil prices and depreciation of the rupee by 3.5 per cent against the dollar were the factors for low profitability of the airline.
However, he noted that fleet modernization plan and marketing strategy had resulted in revenue increase.
He expressed his confidence in the management and the employees of the airline and assured that with the teamwork they would be able to meet the challenges faced by the aviation industry.
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DAWN
April 29, 2005
By Our Reporter
Tariff relief from US sought
ISLAMABAD, April 28: Pakistan has urged the United States to offer tariff concessions on import of goods similar to those which Washington granted to five blocks of the world. Officials told Dawn on Thursday that a formal request for the tariff concessions on Pakistan’s goods was made during a recent visit of senior Pakistani officials to Washington.
The US has already offered the tariff concession arrangements to Andean countries — Bolivia, Columbia, Ecuador, Peru; AGOA-37 countries; EU member countries; CAFTA — five countries, and Asean-member countries.
Under those arrangements, the average tariff on imports of Andean countries into the US stood at 0.3 per cent; AGOVA 0.3 per cent; EU 1.5 per cent; CAFTA 2.9 per cent; and Asean 3.1 per cent.
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DAWN
April 29, 2005
By APP
MNCs keen to invest in oil, gas sector
ISLAMABAD, April 28: The chief executives of various oil and gas exploration companies held separate meetings with Minister for Petroleum and Natural Resources Amanullah Khan Jadoon in London and expressed their strong desire to invest in Pakistan’s oil and gas sector.
The executives include Tour Dream Vice-President Coboco Phillips, Lukoil President Movik Zurrept, BG Tuinthy Senior Vice-President J. Forbes, Technip Senior Vice-President Marecllo Giordano, Tempest Resources Director Peter Bonisch, Centurion Energy Intil President Said Arrata, Red Rock Energy Director (Exploration) Dr Syed M.H. Abedo, besides chief executives of EMO, Gazprom, MOL Preinieroil, BHP and OMV, said a message received from London here on Thursday.
State Minister for Petroleum and Natural Resources Mohammad Naseer Mengal, Secretary Petroleum Ahmad Waqar and DG (Petroleum Concessions) G.A. Sabri were also present during the meetings.
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DAWN
April 29, 2005
By Our Staff Reporter
German defence firm to invest in Pakistan
ISLAMABAD, April 28: A German firm dealing in communication systems used by armed forces and law-enforcement agencies will shortly sign $200 million agreements with Pakistan President of the Rohde and Schwarz, Friedrich N. Schwarz, said at a press conference on Wednesday that his firm was one of the leading companies dealing in defence communication systems and it would invest $200 million annually in Pakistan.
“The firm was responsible to establish the first national frequency management and monitoring system for the Frequency Allocation Board,” he said.
The company, with the cooperation of the Pakistan Telecommunication Authority, would create awareness on quality service matters relating to GSM operators, he said.
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DAWN
April 29, 2005
By Our Correspondent
Annan open to new role for UNMOGIP
NEW DELHI, April 28: UN Secretary General Kofi Annan said on Thursday that he was open to discussions with India and Pakistan on the role of UN military observers monitoring the Line of Control in Jammu and Kashmir. “We are extremely pleased that India and Pakistan are making steady and truly remarkable progress in their bilateral dialogue,” Mr Annan told a news conference at the end of a three-day visit here. He said the UN presence was all part of these efforts.
Asked if it was worthwhile to continue with these observers at a time when India and Pakistan were successfully advancing their peace process, Mr Annan said: “Obviously, we need to discuss with parties concerned as the developments evolve on how we handle our presence and role of observers, what it should be.”
India has had an uneasy relationship with the United Nations Military Observers’ Group (UNMOGIP) since it was mandated to observe the ceasefire between the two countries in Kashmir in 1948.
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DAWN
April 29, 2005
By Our Reporter
Incentives urged for investment in Gwadar
ISLAMABAD, April 28: Minister for Ports and Shipping Babar Khan Ghauri has called for offering maximum incentives for investment in Gwadar to make the port a successful venture. Presiding over a meeting of the Cabinet Committee on Gwadar Special Economic Zone here on Thursday, he said that the success of the port was only possible through provision of maximum incentives to investors, like exemption of federal taxes up to 30 years which could further be extended for another 20 years.
He informed the participants that a special economic zone had been established in Gwadar in which warehouse had been built. He said that there would be no limit for foreign investment in the zone where goods for import/export could be kept for an unlimited period on nominal charges or on lease for a certain period.
Subsidy may be given on utility bills to business concerns at Gwadar port, he added.
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DAWN
April 29, 2005
By Our Staff Reporter
Promotion of telecom products urged
ISLAMABAD, April 28: Information Technology Minister Awais Ahmad Khan Leghari on Thursday urged the country’s software industry to develop expertise and products required for the fast-growing telecom industry. “Given the expansion and growth of the telecom sector, it is high time that the software industry concentrated its resources on developing expertise and domain knowledge within the telecom sector,” he said at a seminar on “Telecom software opportunities” organized by the Pakistan Software Export Board (PSEB) at a local hotel.
Executives from 15 software companies working in the telecom sector interacted with mobile and fixed line operators during the event which aimed to highlight solutions that have been developed locally.
Some of these solutions have found acceptance with telecom companies in the US and the Middle East.
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THE NEWS
April 29, 2005
Monetary policy being tightened to control inflation
SBP governor says country achieves macroeconomic stability;
increase in productivity sole way to minimise trade imbalances
LAHORE: The Governor State Bank of Pakistan (SBP), Dr Ishrat Hussain said on Thursday that the monetary policy is being tightened to control inflation in the country.
"We will continue such efforts till the time inflation comes under control," he said while talking to newsmen at the inaugural session of the three-day annual conference on ‘Management of Pakistan Economy’ at the Lahore School of Economics (LSE).
Ishrat said Pakistan’s industrial sector had imported machinery worth $3-4 billion during the last couple of years and added that factories are now being set up.
Dr Ishrat Hussain hoped that the rise in the interest rates would not affect investment process in Pakistan. He said that the interest rates would decline after the success in the control of inflation.
He said bumper crops of cotton and wheat this year would add an additional amount of Rs50 billion to the rural economy.
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THE NEWS
April 29, 2005
WB remains long-term development partner of Pakistan: Agha
WASHINGTON: The World Bank official on Wednesday said Pakistan has "a long and productive relationship with the Bank."
"While Pakistan has exited from the IMF, and we no longer look upon it as a partner, Pakistan continues to look upon the World Bank as a long-term development partner," Tanwir Ali Agha, alternate Executive Director of the WB told APP in an interview.
Responding to a question, he said the WB has played a key role in supporting Pakistan’s home grown reform agenda, "and we know that the Bank will continue to play its role, because we need their support not only for the second generation reforms in which the Bank has helpful reputation because of its solid base, but also to help us in infrastructure and social sectors."
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DAILY TIMES
April 29, 2005
Telecom firms to face pricing pressure: Awais
ISLAMABAD: Awais Ahmed Khan, federal minister for IT and telecom said on Thursday there would be an intense downward price pressure within the telecom industry on the back of total deregulation and upcoming privatisation of Pakistan Telecom-munication Company.
“Companies that do not utilise IT-based solutions to lower costs, reduce inventory and improve customer care will not be able to compete in this era of fierce competition,” he told seminar on ‘telecom software opportunities’, organised by Pakistan Software Export Board (PSEB).
“This should encourage the software companies to benefit from this initiative and produce products in line with the requirement of the telecom industry. It is high time that the software industry concentrated its resources on developing expertise and domain knowledge within the telecom sector.”
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DAILY TIMES
April 29, 2005
By APP
No South Asian leader can match Musharraf’
ISLAMABAD: Foreign Minister Khurshid Mehmood Kasuri said on Thursday that nobody had the right to question Pakistan’s sincerity in pursuing the peace process in South Asia.
Commenting on remarks by “India Today” magazine in which it highlighted India’s concerns about Pakistan’s sincerity in pursuing the peace process. “Nobody has the right to question Pakistan’s sincerity about its desire for pursuing peace. Pakistan’s actions speak louder than words,” Kasuri told BBC TV.
Praising President General Pervez Musharraf, the foreign minister said that no leader in South Asia had the courage to do what Musharraf did.
Replying to a question he said, India’s acquisition of weapons did not bother Pakistan.
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DAILY TIMES
April 29, 2005
By Khalid Hasan
Only 1% students madrassa-enrolled
WASHINGTON: Although madrassas in Pakistan present problems, their nature and extent have been overstated, given the fact that only one to five percent of Pakistan’s students are enrolled in madrassas.
This was stated by Christine Fair, programme officer in the Muslim World Initiative of the Research and Studies Programme at the US Institute of Peace, in a speech to a Capitol Hill-based study group. She stressed the importance of US support for public education, including the building of more schools, training of qualified teachers, and reform of the curriculum. Strengthening Pakistan’s civilian institutions in support of democracy is also necessary, she stressed. She pointed out by way of example that police training and establishing a credible judiciary system are critical places to start.
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DAILY TIMES
April 29, 2005
By Staff Report
Eventual Kashmir settlement difficult to predict: US expert
WASHINGTON: The eventual resolution of the Kashmir dispute is unlikely to resemble either a territorial transfer or the present status quo, according to a well-known American South Asia expert.
Marvin G Weinbaum of the Middle East Institute told Daily Times in an interview on Thursday that the “cricket summit”, as the Musharraf-Manmohan meeting has come to be known, represents an “achievement in process and atmospherics over an advance in substance.” He felt that it is “probably just as well, because the tough bilateral issues between Pakistan and India, most notably respecting Kashmir, are “clearly not ripe for serious negotiations, much less a final status solution.”
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DAILY TIMES
April 29, 2005
By Staff Report
New PIA chief promises better service
LAHORE: Tariq Kirmani, recently appointed Pakistan International Airlines Corporation (PIAC) chairman, has pledged to increase the profitability of the airline and improve its service.
Addressing a meeting of the PIAC’s shareholders on Thursday, he said that he was confident the management and employees of the airline would help him meet the challenges PIA faced in the aviation industry.
Kirmani said that nine aircraft were acquired during 2004. “New destinations were added to our services and flight frequency was also increased. Our fleet modernisation plan and marketing strategy increased our revenue,” he said. He said that the year ended on a sad note. A phenomenal increase in oil prices adversely affected all the airlines of the world. A 3.7 percent depreciation of the rupee against the US dollar also adversely affected the industry, he said.
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BUSINESS RECORDER
April 29, 2005
By RECORDER REPORT
No collapse of economy, if US withdrew support: Ishrat
LAHORE (April 29 2005): Pakistan's economy will not collapse if the US withdrew its official assistance. The amount involved is too insignificant, said the Governor State Bank of Pakistan, Dr Ishrat Husain here on Thursday. Inaugurating a seminar on "Key Issues in Managing Pakistan's Economy", organised by Lahore School of Economics, the Central Bank chief said "if we combine all the bilateral official flows from the US, they do not, on average, exceed dollars one billion annually. Pakistan's foreign exchange earnings will amount to $25 billion this year".
As such, said the SBP Governor, the quantum of assistance from the US economy to Pakistan does not form a significant proportion of our foreign exchange receipts. He added that what we really need from the US is better market access to our exports, on the same terms as allowed to the Central American, Caribbean and African countries.
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BUSINESS RECORDER
April 29, 2005
By RECORDER REPORT
CBR favours reduction in companies' taxes in budget
ISLAMABAD (April 29 2005): The tax authorities have conveyed to the Securities and Exchange Commission of Pakistan (SECP) that the Central Board of Revenue (CBR) strongly favours reduction in taxes on all types of companies in the budget 2005-06. CBR Chairman Abdullah Yusuf and SECP Chairman Dr Tariq Hasan held a meeting to finalise Corporate Tax Policy and budget proposals here on Thursday. SECP Commissioner Shahid Ghaffar, Member Direct Taxes Salman Nabi and other senior officials of the commission were also present in the meeting.
During the budget preparation exercise, both the chairmen discussed recommendations of the Task Force to review the existing legal and policy regime for corporate tax, applicable tax rates and tax refund procedures for various taxes.
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BUSINESS RECORDER
April 29, 2005
By RECORDER REPORT
United Bank to be privatised in June: minister
LAHORE (April 29 2005): Federal Minister for Privatisation Abdul Hafeez Shaikh has said privatisation process of PSO, PTCL, National Refinery and Pak Arab Fertiliser would be completed within next six months. He said this while talking to newsmen after addressing the first national conference on 'Management of the Pakistan Economy' at the Lahore School of Economics here on Thursday. The Minister further said privatisation of UBL would take place in June this year.
"The Privatisation Commission has generated an amount of Rs 75 billion during last two years, while during first three years of General Pervez Musharraf regime the Commission yielded Rs 36 billion. On the contrary, only Rs 60 billion could be received through privatisation during last 10 years prior to General Musharraf's take over," he added.
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THE NATION
April 29, 2005
By COMMERCE REPORTER
PC to privatise four mega units in a few months
LAHORE - Federal Minister for Privatisation and Investment Dr Abdul Hafeez Sheikh said that four mega units would be privatised within next few months.
Talking to newsmen at the First Annual Conference on Management of Pakistan Economy arranged by Lahore School of Economics on Thursday, the minister said that Pakarab Fertilizer, National Refinery Limited (NRL), Pakistan Telecommunication Company Limited (PTCL) and Pakistan State Oil would be privatised within next few months.